Bitcoin Does Not Protect Against Fraud

There is a common misconception that the cryptocurrency Bitcoin is safe and secure and will protect those who trade in it from fraud. However, NEP’s Bill Black explains, Bitcoin is just as susceptible to fraud as any other type of transaction and complacency makes the likelihood of fraud only greater. You can view with transcript here.

Okay first of all, the fraud being committed on exchanges is true because most exchanges don’t fully run on blockchains/cryptocurrency technology – these exchanges have their own security and their problematic ways of running their exchange does not have a true value gauge on cryptocurrencies themselves. Secondly, every single competent influencer and intelligent buyer in the cryptocurrency space does not push putting your cryptocurrency on these exchanges, you should put them in a software wallet, or a hardware wallet – both very secure. Lastly, and most importantly, I would recommend understanding the difference between blockchain and bitcoin. Blockchain is the underlying technology behind bitcoin, but has its own applications and uses outside of the cryptocurrency space. Blockchain is a technological tool that CAN reduce and prevent fraud in many different aspects of our world today, not just the financial industry. https://www.ibm.com/blogs/blockchain/2017/07/blockchain-for-fraud-prevention-industry-use-cases/ – you can begin to understand how they are different here at this link, and would love to be able to discuss about the future of both these technologies. I am no expert in fraud, but know a great deal about cryptocurrency and blockchain.